Nicaragua's economy grew 10.3% in 2021, after three years of downturn

Managua, March 19 (EFE). Nicaragua’s economy rose 10.3% in 2021, the first year of growth after three consecutive years of lockdown with a red balance, the Central Bank of Nicaragua said on Saturday.

The source bank explained that “in 2021, economic activity showed a rapid and strong recovery, overcoming the negative effects resulting from the various shocks that the economy has faced in recent years, among them the global epidemic of Covid-19.” state in a preliminary report.

“Thus, preliminary information indicates that in 2021 Nicaragua’s GDP showed a growth of 10.3%,” he explained.

The monetary entity indicated that this increase was the result of the international context that favored an increase in trade and an increase in external demand and international prices of primary commodities.

It is also due to advances in vaccination against COVID-19, he added.

The Central Bank expected Nicaragua’s GDP to grow from 7.5% to 9.5% in 2021.

The Nicaraguan economy contracted at a rate of -3.03% per year in the period 2018-2020.

Gross domestic product fell 2.0% in 2020, as a result of the outbreak of the COVID-19 pandemic and damage caused by Hurricanes Eta and Eta, in November of that year, according to the central bank.

In 2019, it decreased 3.7% and 3.4% in 2018, due to the social and political crisis that has afflicted the country for 47 months, according to the Monetary Authority.

For 2022, the Central Bank of Nicaragua estimates economic growth to be between 3.5% and 4.5%, and estimated inflation is in a range of 2.5% to 3.5%. EFE

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